Oil Steady as Rebound in China Weighs Against Recession Fears

Crude is largely unchanged so far this month after a weak start to the year with recession fears running through the market. The outlook for China and a weaker dollar — which makes commodities priced in the currency more attractive — have helped oil claw back some ground. More uncertainty lies ahead with sanctions and price caps on Russian petroleum products set to kick in next month.

“There’s still a positive sentiment in the market due to China demand, but it may change if we see disappointing US GDP data tomorrow, or a surprising build” in American oil stockpiles on Wednesday, said Tamas Varga, an analyst at PVM Oil. “There’s still a positive sentiment in the market due to China demand, but it may change if we see disappointing US GDP data tomorrow, or a surprising build in the EIA report today.”

Prices:

WTI for March delivery was little changed at $80.15 a barrel at 10:37 a.m. in London, after swinging between small gains and losses
Brent for the same month was also almost unchanged at $86.13.
Brent’s prompt spread slipped back into contango on Tuesday following a brief foray into backwardation.